Consumer Behavior Week 2 notes
Consumer Behavior Week 2 notes MKTG 3553
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This 3 page Class Notes was uploaded by ajtovar on Sunday September 4, 2016. The Class Notes belongs to MKTG 3553 at University of Arkansas taught by Alireza Golmohammadi in Fall 2016. Since its upload, it has received 5 views. For similar materials see Consumer Behavior in Marketing at University of Arkansas.
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Date Created: 09/04/16
1. Personal relevance a. Extent to which is has a direct bearing on and significant implications for your life i. Values ii. Needs iii. Goals (outcomes we would like to achieve) b. Values: beliefs about what’s good i. Ex. Education ii. Being sustainable, respecting the environment is popular rn iii. Can directly impact our decisions, not just our motivation 1. Fair trade effect: products that have fair trade label have been manufactured in a facility/company which provides fair compensations for workers. Consumers value this, and research has shown that when customers see the fair trade label they process info about that brand more carefully and feel the product is better. c. Needs: an internal state of tension by disequilibrium from an ideal or desired state (when current state and desired state are out of sync) i. As a marketer stress how you can satisfy needs with the product ii. Maslow’s hierarchy of needs 1. Physiological, safety, love/belonging, esteem, self- actualization iii. Social vs nonsocial and functional vs symbolic vs hedonic iv. Characteristics of needs 1. Dynamic (never become fully satisfied) 2. Exist in hierarchy (some needs have higher importance or salience than others) 3. Internally or externally aroused (need for food is internally aroused if you are hungry or external if you pass by a fast food restaurant and the smell of the food makes you hungry) 4. Can conflict a. Approach-avoidance: happens when something is good for one need but not good for another i. Ex. Smoking cigarettes b. Approach-approach: pick b/w 2 equally desirable things to satisfy needs c. Avoidance-avoidance: pick b/w 2 equally undesirable things d. Goals: a particular end state or outcome that a person would like to achieve i. Saving money, enrolling in a class you want to take, taking someone special to dinner ii. If something will help us reach a goal we are more motivated to do it/buy it iii. Types of goals 1. Promotion-focused: deal w/ achieving positive outcomes a. Achieving something desirable or pleasant b. Ex. Toothpaste gives you nice smile 2. prevention focused: focus on avoiding negative outcomes a. avoiding risks and costs b. ex. Toothpaste helps avoid cavities 3. goals to regulate how consumers feel a. ex. When people feel sad they think some purchases would make them happier (retail therapy) 4. goals to regulate what consumers do a. If in past weeks you’ve partied a lot you are likely to try and regulate what you do and study more b. ex. Anti-smoking messages iv. goals and emotion 1. we think outcomes make us happy or sad 2. Appraisal theory: whether a consumer feels good or bad about something depends on whether it is consistent or inconsistent w/ his/her goals. Cognitive process a. appraisal dimensions: i. moral compatibility ii. agency iii. goal compatibility iv. certainty e. marketing implications of needs and goals i. segmenting the market (healthy cereals for health consumers) ii. creating new needs and goals 1. felt, intrinsic, and hidden needs (not currently felt by customers, you should reveal that need ex. IPad) iii. appealing to multiple goals (bundling products or healthy sandwiches = health needs + hedonic needs) iv. Enhance communication effectiveness (speak to the consumer’s needs and goals ex. People who want to lose weight so to succeed in diet industry you need to highlight this need to grab the attention of your target audience) v. appeal to goals 2. perceived risk: the extent to which the consumer is uncertain about the personal consequences of buying, using, or disposing of an offering a. circumstances causing increased perceived risk i. lack of information ii. newness iii. High price. 1. Higher the price higher the perceived risk iv. Complex technology v. Brand differentiation vi. When other’s opinion is important vii. Perception of risk varies from person to person b. Types of perceived risk i. Performance: whether product will work or not ii. Financial: as the price increases the risk goes up iii. Physical (safety): using something or not using something iv. Social (will buying this harm my social standing; e.g. smoking) v. Psychological (will buying this conflict with my self-perception; e.g. non environmentally friendly products) vi. Time (high when product has a significant time commitment or long time of consumption ex. 3 year gym membership) c. Consequences of perceived risk i. Higher involvement 1. When risk is low, consumers are less motivated to think about the brand or product ii. Collecting additional info 1. Online research, news articles, engaging in comparative shopping, talking to friends or sales specialists, or consulting an expert iii. Brand loyalty iv. Using shortcuts 1. The most expensive (we think the most expensive option is most likely to perform well) 2. The most heavily advertised d. Marketing implications i. Presence in social media 1. Retweeting people who have used your product and had positive experience ii. Trust-building campaigns 1. Reference groups and celebrity endorsement iii. Branding iv. Reduce the perceived consequences of failure 1. ex. Free returns v. High risk is generally uncomfortable for consumer. As a result, they are usually motivated to reduce or resolve risk vi. he effectiveness of marketing effort (ex. Ads) can be improved by presenting the products/ services as means to avoiding risky outcomes a.
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